KUALA LUMPUR (Aug 17): The FBM KLCI is seen trending higher today with immediate hurdle at 1,775.
Wall Street edged higher on Wednesday but closed well off session highs and the dollar fell on the latest turmoil in Washington and U.S. Federal Reserve meeting minutes that showed worries about low inflation, according to Reuters.
U.S. Treasury yields fell with benchmark yields retreating from one-week highs after the July meeting minutes and as investors worried that a backlash against President Donald Trump's comments after a violent weekend rally would stunt his ability to deliver on his pro-business promises, it said.
The Dow Jones Industrial Average rose 25.88 points, or 0.12 percent, to 22,024.87, the S&P 500 gained 3.5 points, or 0.14 percent, to 2,468.11 and the Nasdaq Composite added 12.10 points, or 0.19 percent, to 6,345.11, said Reuters.
AllianceDBS Research in its evening edition Wednesday said the FBM KLCI had on Aug 16 traded higher to 1,774.61 as market participants continued to play on the buying side in anticipation of a higher market.
It said in the absence of stronger buying interest, the benchmark index was moving between the red and green zones throughout the trading sessions before settling near the day’s high at 1,773.75 (up 1.36 points or 0.08%).
“In the broader market, gainers outnumbered losers with 529 stocks ending higher and 295 stocks finishing lower. That gave a market breadth of 1.79 indicating the bulls were in better control,” it said.
AllianceDBS Research said despite the sell-off which pushed the market down to the low of 1,766.96 in a sell-off on Aug 11, the market managed to pull up in the subsequent days with the benchmark index making marginal higher highs on Aug 15 & 16.
“This showed that market participants were unwilling to play a more aggressive selling game.
“Many market participants were believed to have chosen to stay sidelines until they see a clearer picture on chart,” it said.
The research house said following the up close on Aug 16, there should be buying attempt again with immediate hurdle at 1,775.
“The analysis of overall market action on Aug 16 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,774.61 level on Aug 17,” said AllianceDBS Research.
Based on corporate announcements and news flow yesterday, stocks in focus today may include the following: Country Heights Holdings Bhd, Dialog Group Bhd, Sunway Bhd, Pharmaniaga Holdings Bhd, Paramount Corporation Bhd, Taliworks Corporation Bhd, Press Metal Aluminium Holdings Bhd and Seacera Group Bhd.